LightInTheBox (LITB) Q2 2025 earnings summary

Executive summary

• Achieved fifth consecutive profitable quarter, with net income of $2.0 million in Q2 2025, up from $0.6 million year-over-year, reflecting a successful transformation to a DTC apparel model.

• Revenue declined 15% year-over-year to $58.9 million in Q2 2025, but the rate of decline moderated from Q1's 34%, indicating stabilization.

• Focused on margin preservation and proprietary brands, leading to improved gross margins and operational efficiency.

• Proprietary brands, especially Ador.com and new women's golf apparel, are driving higher margins and customer engagement.

Financial highlights

• Q2 2025 total revenues: $58.9 million, down 15% year-over-year; gross profit: $38.8 million.

• Gross margin improved to 65.9% from 62.4% year-over-year.

• Operating expenses decreased 14% year-over-year to $36.9 million in Q2; net income reached $2.0 million, up from $0.6 million.

• Adjusted EBITDA was $2.3 million in Q2 2025, up from $1.2 million year-over-year.

• For H1 2025, total revenues were $105.9 million (down 25% year-over-year), gross profit $69.4 million, and net income $2.1 million versus a $3.2 million loss in H1 2024.

Outlook and guidance

• Expects to return to overall revenue growth in early 2026 as DTC initiatives scale and brand awareness deepens.

• Strategic transformation and stabilization of legacy business position the company for scalable growth and lasting shareholder value.